Approximately How Much Must Be Saved for Retirement in Order

question 126

Multiple Choice

Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 25 years if the balance earns 8 percent annually, and the first payment occurs one year from now?

• A)$1,067,000
• B)$1,250,000
• C)$2,315,000
• D)$2,500,000 PV = $100,000
• = $100,000 x (12.5 -1.8252)

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Definitions:

Maslow's

Relating to the hierarchy of needs theory developed by Abraham Maslow, which posits that human motivations are influenced by a progression of needs, starting from basic survival needs up to self-actualization.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and clothing, that are essential to maintaining life.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's own potential and self-fulfillment.

Growth Needs

The desire for personal development, self-improvement, and the realization of one's potential.